Global manufacturers increased their purchases of components and raw materials in September as demand swelled. At the same time, though, supply pressures have intensified, according to researchers at S&P Global and GEP, who produce the monthly GEP Global Supply Chain Volatility Index.
The index covers 40 countries and around 27,000 companies. The index is a weighted sum of six sub-indices that are derived from Purchasing Managers Index (PMI) data, PMI comments trackers and PMI commodity price and supply indicators that are compiled by S&P Global.
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“Global input demand growth rose to its strongest since May and was close to its 2026 high, signaling firmer manufacturing activity heading into the fourth quarter,” the report’s authors said. “Purchasing strengthened across North America, Asia and Europe, with particularly strong increases in the United States, Germany, Taiwan and South Korea.”
The researchers said shortages increased for the first time since May, while global transportation costs also rose. “Shortages of oil and oil-based products were particularly acute, creating renewed cost and availability pressures for manufacturers,” the report noted.
“Manufacturers are buying more because demand is strengthening, but they’re doing so at a time when shortages and transportation costs are starting to rise again,” said John Piatek, vice president, GEP Consulting. “For companies, that means the priority shifts from simply protecting inventory to securing supply and controlling costs.
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